SmartCompany, October 18, 2018

Jobs and Industrial Relations Minister Kelly O’Dwyer will intervene in a test-case before the Federal Court about whether casual workers are entitled to annual leave and other entitlements on top of casual loading.

The Federal Court is due to hear an application by labour-hire firm Workpac on Thursday which seeks to have the full bench determine whether casual loadings can offset annual leave claims.

It comes after an earlier case last month where the Federal Court ruled one of Workpac’s longstanding casual workers was entitled to annual leave back payments, despite having been paid casual loading.

The ruling sent shockwaves through the private sector, as it may potentially entitle millions of casual workers to annual leave back payments, estimated at up to $8 billion.

There is a particular concern for small businesses, which employ a comparatively large amount of casual workers.

O’Dwyer has been considering introducing changes to the Fair Work Act to nullify concerns casuals can “double dip” on entitlements, but decided on Thursday to become party to Workpac’s new test-case.